So, I have this all taken apart and I think that the oil leak is a result of a bad o-ring between the Dana 60 spindle and the fab'ed up FJ40 axle tube (DS). I have had no luck in finding a 2 9/16" ID; 2 3/4" OD o-ring anywhere but McMasters. This has been ordered and I should get them eventually.

In cleaning things up I found *lots* of metal fragments inside the axle tube (about a teaspoon). This rear end was allegedly rebuilt about 8,000 miles ago and in general things look pretty good.

These metal "shavings" could stick to a magnet sand are about the size of course ground pepper. They are not from the drian, but ar in the bottom of the driver side axle tube (I have the hub, brake, and pindle removed to fix the leak.